In this post, you will read the most simple and effective stock market tips. So let us start.
- Never forget to pick stocks from the leading industry groups or sectors. It is observed that usually, all market leaders have a habit of investing in the top industry groups and sectors.
- Generally, it is seen that the large numbers of big winning stocks come from sectors like drugs, medical, computers, communications technology, software, speciality retail, and leisure and entertainment.
- Keep in mind the importance of volume. Here, the volume is the actual number of shares traded by a stock.
- In the past stocks have never gone up by an accident. There is always a reason behind it. Large buying from big investors could be a possible reason behind a stock going up.
- You need to determine the bases that are formed before the stock broke out into the new high ground in price. You must also summarize the bases that get created when the stock went on to make their biggest gains.
- In general, the most common pattern that occurs is a “cup with handle”. This is named so because it resembles a coffee cup when viewed from the side.
- You must know the optimal buying point for any stock and that is the pivot point.
- Always remember that when a stock breaks out, volume should get increased by 50% or more above its average.
- Remember that when there is a decrease in the price of decreased volume then it indicates no significant selling.
- Earlier might be informed about a saying “buy low and sell high” but now you must remember “buy high and sell a lot higher.”
- Do not follow a stock up more than 5% past its pivot.
- With the help of chart price, you can recognize when a stock has reached its top and what is the right time to sell.
- Remember what has happened earlier, as history always repeats itself in the stock market.
- You must never sell a stock that goes up 20% in four weeks or less, you may have a big winner.
- To pick a winning stock, it is important to carry out a combination of fundamental as well as technical analysis. This will help you in narrowing down your choices.
You must focus on these Stock Market Tips essentially.